ISLAMABAD: In a bid to accelerate government’s development agenda, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired three consecutive high-level meetings on Friday to review progress on key social impact initiatives.
These projects — focused on skill development, farmer empowerment, and energy efficiency — are slated for launch in the coming weeks and are central to the Prime Minister’s vision for inclusive and sustainable growth.
The initiatives are being implemented in close coordination with relevant ministries, regulatory bodies, financial institutions, and technical partners, and are designed to generate measurable social impact while aligning with Sustainable Development Goals (SDGs).
PM’s Fan Replacement Programme: Aurangzeb orders launch preparations by month-end
The first meeting reviewed the Pakistan Skills Impact Bond, the country’s first outcomes-based, impact-linked financing instrument to be raised domestically.
Developed under the Social Impact Financing Framework created by a Ministry of Finance-led committee constituted by the prime minister, and under the leadership of the finance minister, this instrument will serve as the first in a broader programme to mobilise funding from both domestic and international private and philanthropic capital.
All social impact financing will be tied to one or more of the six priority pillars outlined in the Framework and linked to several Sustainable Development Goals (SDGs).
The finance minister observed that the Pakistan Skills Impact Bond must be positioned as a “trailblazer” that not only meets immediate development needs but also sets a precedent for attracting a more diverse and deeper investor base. He stressed that this was an opportunity to demonstrate that Pakistan could lead in innovative financing approaches, capable of attracting outcomes funders from around the globe.
The second meeting focused on the National Subsistence Farmers Support Scheme (NSFSS), a flagship component of the ECC-approved Access to Finance framework for farmers. Inspired by the prime minister and driven by the Ministry of Finance-led task force under the direction of the finance minister, the NSFSS will unlock digitally enabled, uncollateralised bank loans for smallholder farmers—those owning or cultivating up to 12.5 acres of land, including tenant farmers.
By leveraging agronomy-related satellite data through the Land Information and Management System (LIMS), banks will integrate this data into their credit scoring models, enabling the provision of loans for agricultural inputs at reasonable mark-up rates, in contrast to the high costs associated with informal lending from middlemen.
The State Bank of Pakistan is collaborating with banks and the Pakistan Banks’ Association to operationalise the scheme via a centralised portal developed and managed by the Punjab Information Technology Board (PITB), ensuring an end-to-end digital customer journey.
The finance minister noted that this would be “the first time space technology will be driving agricultural credit decisions on a national scale” and that the initiative represented “a breakthrough moment” for rural financing in Pakistan.
He also pointed out that with 97 percent of farmers owning less than 12.5 acres as per the latest 7th Agriculture Census, the scheme was directly targeted at the segment most in need of affordable credit, and it would have a transformative impact on rural livelihoods, agricultural productivity, and financial inclusion.
The third meeting reviewed progress on the Prime Minister’s Fan Replacement Programme, an energy efficiency initiative co-developed by the Power Division’s National Energy Efficiency and Conservation Authority (NEECA) in collaboration with banks.
Copyright Business Recorder, 2025
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